Cheddar News, known for its innovative approach in the financial news world, has placed some of its employees on unpaid leave. This development at Cheddar, a company with a vision to revolutionize traditional business news through streaming and free access, occurred on Tuesday.
The move comes four years after Altice USA acquired Cheddar for $200 million, marking a significant turn in the company's journey.
Cheddar Employees Placed on Immediate Furlough Amid Company Sale
In a sudden move, the news network Cheddar has placed several of its workers on furlough with immediate effect. Employees have been instructed to cease all work activities, as detailed in an email recently sent to them.
The email, which was obtained by The New York Times, explained that the decision for immediate action was due to unexpected changes both within and outside the company, necessitating swift alterations to Cheddar's business strategy.
This development follows last week's announcement by Altice USA, the previous owner of Cheddar that the network has been sold to Archetype.
Archetype, a media company under the California-based investment firm Regent, manages various media titles, including military-focused ones like Army Times and Defense News, as well as the widely-used RateMyProfessors site.
However, the exact number of Cheddar employees affected by this layoff remains unknown. Attempts to reach Regent and Archetype for comments have so far been unsuccessful.
Like many digital media startups, Cheddar has faced challenges in the competitive online advertising market. Earlier in June, Altice USA had laid off several anchors and much of the production staff of some of Cheddar's well-known shows.
Cheddar Faces Further Staff Reductions Amid Business Shifts
In a recent wave of job cuts at Cheddar, an undisclosed number of employees have been furloughed, adding to the 12 staff members, including anchors, who were let go in June, as reported by Talking Biz News.
Cheddar, facing significant changes in its workforce, has seen the departure of some of its most prominent figures, including veteran anchors Chloe Aiello and Baker Machado. Several sources confirmed this.
A familiar face at Cheddar for almost five years, Aiello started as a reporter before becoming a full-time anchor last year. She played a significant role in the network, particularly on their popular morning show, 'Wake Up With Cheddar.'
The New York Times notes that the exact number of those affected in this latest round is unclear. However, in a statement to The Messenger, a Cheddar employee expressed a grim outlook, saying, "There's nothing left."
The company conveyed to its staff the urgent nature of these decisions.
"We would have liked to give more notice, but we had to quickly change our business strategy due to unexpected issues inside and outside the company," read the statement to employees, as per The Times.
Requests for comments from Cheddar, its new owner Archetype, and former owner Altice USA went unanswered when approached by The Messenger.
Regent, the recent acquirer of Cheddar, has a diverse portfolio, extending its investments across various sectors, including media, technology, retail, and consumer products. Notable brands under Regent's umbrella include Club Monaco, Zulily, and even a stake in eBay.
Since 2015, the company has expanded its holdings by acquiring over 30 businesses. Today, Regent's portfolio companies employ more than 20,000 persons worldwide, showcasing its significant global presence.
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